At the end of 2016, Lumos Company reported the following amounts on its balance sheet:
Answer each of the following independent questions:
A. Assume that Lumos' stockholders' equity on January 1, 2016 was $264,000. Lumos did not issue common stock during the year, but it paid $36,000 cash in dividends. How much is Lumos' net income or loss for 2016?
B. Assume that Lumos' stockholders' equity on January 1, 2016 was $236,000, and that Lumos issued additional common stock of $70,000 and paid $44,000 in cash dividends before the end of 2016. What was Lumos' net income or net loss for 2016?

Question

At the end of 2016, Lumos Company reported the following amounts on its balance sheet:
  Answer each of the following independent questions:
A. Assume that Lumos' stockholders' equity on January 1, 2016 was $264,000. Lumos did not issue common stock during the year, but it paid $36,000 cash in dividends. How much is Lumos' net income or loss for 2016?
B. Assume that Lumos' stockholders' equity on January 1, 2016 was $236,000, and that Lumos issued additional common stock of $70,000 and paid $44,000 in cash dividends before the end of 2016. What was Lumos' net income or net loss for 2016?

Quizplus · Accepted Answer

The Answer of At the end of 2016, Lumos Company reported the following amounts on its balance sheet:
  Answer each of the following independent questions:
A. Assume that Lumos' stockholders' equity on January 1, 2016 was $264,000. Lumos did not issue common stock during the year, but it paid $36,000 cash in dividends. How much is Lumos' net income or loss for 2016?
B. Assume that Lumos' stockholders' equity on January 1, 2016 was $236,000, and that Lumos issued additional common stock of $70,000 and paid $44,000 in cash dividends before the end of 2016. What was Lumos' net income or net loss for 2016?

At the End of 2016, Lumos Company Reported the Following